Pirojsha Godrej Predicts Strong Real Estate Growth Until 2028, Bullish on FMCG

Godrej Industries Executive Vice Chairperson Pirojsha Godrej is optimistic about the strong momentum in both the real estate and consumer businesses, despite uneven recovery in some consumption markets. In an interview with CNBC-TV18, he highlighted the robust performance of Godrej Properties and the long-term potential in the FMCG sector.

Godrej noted that Godrej Properties' booking value in the second quarter grew by 60%. He emphasized that the company is still in the middle stages of the real estate cycle and expects it to continue until 2028. According to Godrej, Godrej Properties is well-positioned for rapid scale-up in the coming years, with the potential to compound at 20% annually from a high base.

However, Godrej also acknowledged the divergent trends in household spending, describing a K-shaped recovery in the consumption space. While some sectors are experiencing robust growth, others are lagging behind. This uneven recovery underscores the importance of strategic positioning and adaptability in the market.

In the FMCG sector, Godrej remains confident about long-term demand trends, despite current challenges. He expressed excitement about the long-term FMCG opportunity and highlighted the company's focus on achieving category leadership in its existing FMCG categories. Godrej Consumer Products is particularly optimistic about growth in key segments such as perfumes and deodorants. Additionally, the company is exploring opportunities in adjacencies like the petcare segment.

Godrej also discussed the company's overall expansion strategy, emphasizing the importance of organic growth for Godrej Consumer Products. Despite the current market conditions, the company is committed to leveraging its strengths in key FMCG categories and exploring new growth areas.

Shares of Godrej Industries were trading slightly lower at 12:15 pm, down by half a percent. The stock has experienced a decline of over 13% in the year so far. However, the company's strategic focus and long-term outlook suggest that it is well-prepared to navigate the current market challenges and capitalize on future opportunities.

Godrej Industries is a diversified conglomerate with a strong presence in various sectors, including real estate, consumer products, and industrial manufacturing. The company's commitment to innovation and sustainable growth has positioned it as a leader in the Indian market. With a clear vision and strategic planning, Godrej Industries is poised to continue its upward trajectory in the coming years.